Some Michiganders will now be able to choose legally not to file
income tax return forms with the state.

Under a new program called No-Form, eligible taxpayers can choose
not to complete a tax return for 1997. (Returns for 1996 must still
be filed by April 15, 1997 whether or not you meet the following
conditions.) Participants must be Michigan residents, earn income
upon which the proper amount of Michigan tax has been withheld, have
other income (such as interest income) subject to Michigan tax of
less than $100 for a single return or $200 for a joint return, and
they must file a new MI-W4 form choosing the No-Form option.

Choosing the No-Form option means you cannot claim these credits
on your return:

homestead property tax

city income tax

medical care savings account

public contributions

community foundations

homeless/food bank contributions

college tuition

You may, however, file appropriate credit forms and receive a
credit for home heating or prescription drugs with the No-Form
option.

University employees who have questions about the new option or
who believe they are eligible and would like to participate in the
no-form program should contact the Payroll Office, 764-8250, and
complete a new MI-W4 form stating their intent to participate.

Q & A: The No-Form option

Is there a deadline for participating in the No-Form
Michigan income tax option?

If you are currently employed, you should choose the
No-Form option before the end of the first pay period in
1997. You may choose the No-Form option at any time during
the year if the correct amount of tax has been withheld.

How do I know if the correct amount has been
withheld?

To determine if the correct amount of tax is being
withheld, subtract your exemption allowance from your gross
wage figure, then multiply the result by 4.4 percent (x
.044, the income tax rate). The following example, using a
single person with an annual salary of $20,000 who is
entitled to one exemption and who is paid bi-weekly, may
help:

Example:

Wages are $20,000.

Exemption allowance: 1 x 2,500=2,500

$20,000-$2,500 = $17,500 tax liability

4.4 % (tax rate) x $17,500=$770

Divide by the number of pay periods in the year:

$770 divided by 26=$29.61

Your Michigan tax withheld biweekly should be close to
$29.61 each pay period.